"It is encouraging to see that investors and landlords seem to be returning to the market"
- Raphael Benggio - MT Finance
The average completion time for a bridging loan fell to 43 days in 2025, the lowest figure since 2017, according to the latest Bridging Trends data. Buyers prioritised speed amid increasing market stability.
Annual contributor gross lending totalled £811 million across 2025. Purchasing an investment property remained the most popular use of bridging finance, while the average completion time dropped to its lowest level since 2017.
Completion times for bridging loans fell for the third consecutive year, reaching 43 days in 2025 compared to 47 in 2024. This matches the 2017 figure and suggests multiple factors are combining to speed up the process significantly.
Technology implementation, increased efficiency and brokers having a better understanding of requirements have all contributed to faster turnarounds.
Bridging Trends contributors transacted £811 million of bridging loans in 2025, a 1.4% drop from 2024's £822.2 million. A softer fourth quarter saw £199.9 million in transactions, down from £209.4 million in the third quarter. While this pattern is typical of previous fourth quarters, caution ahead of November's Budget may have exacerbated the slowdown.
Funding an investment purchase was the most popular use of a bridging loan in 2025, accounting for 20% of all bridges compared to 19% in 2024. Heavy refurbishment bridging loans also increased from 9% in 2024 to 11% in 2025.
Landlords and investors appear to be returning to the market, growing their portfolios while seeking ways to maximise their return on investment. The return of landlords is also visible in the slight uptick in unregulated bridging, which rose from 54% in 2024 to 55% in 2025.
Re-bridges jumped from 7% in 2024 to 10% in 2025. "These figures point to a bridging market that's become more efficient and more considered," said Andre Barlett, CEO and co-founder at Capital B Property Finance. "Rates and completion times are at some of their lowest levels in years, which reflects stronger lender competition and better broker-lender processes.
"At the same time, lower average LTVs show a continued focus on sensible risk. The growth in regulated refinances and re-bridging tells us borrowers are using bridging more strategically, not just as a last resort. Overall, it feels like a more mature, outcome-driven market."
While the market is stabilising, sales remain somewhat flat, potentially impacting those whose exit strategy depends on property sales.
The average monthly interest rate fell from 0.88% in 2024 to 0.84% in 2025. A reduction in the average loan-to-value, which dropped from 58% in 2024 to 55% in 2025, likely contributed to this decline. First charge lending rose from 86% in 2024 to 89%, which may also have played a part. Lenders are increasingly competitive on rates, welcome news for borrowers.
Knowledge Bank data shows the top criteria searches made by bridging finance brokers in 2025 were for regulated bridging, minimum loan amount and maximum loan-to-value.
"The increase in searches around planning permission and splitting title deeds is a strong signal that property investors are becoming more creative and strategic with their portfolios," said Shane Chawatama, sales director at Knowledge Bank.
"Rather than stepping back, advisers are clearly working through more complex asset structures, value-add opportunities and alternative exit strategies. This sits alongside continued interest in adverse credit criteria, suggesting that while some investors are navigating credit challenges, the focus remains on restructuring and optimisation rather than distress. For lenders, this underlines a growing opportunity to support sophisticated, criteria-led transactions where clarity and flexibility are just as important as price."
Searches relating to splitting title deeds, planning permissions and minimum age at application increased in the final quarter of 2025, implying that landlords and investors continue to diversify their portfolios and income structures.
The average term for a bridging loan remained at 12 months.
"It is encouraging to see that investors and landlords seem to be returning to the market," said Raphael Benggio, bridging director at MT Finance.
"November's Budget wasn't as disastrous for the property sector as many feared, and instead it has largely been a case of business as usual. There is a lot of liquidity, and lenders certainly seem to be competitive with their rates, which is great news for borrowers. It is also encouraging to see the downward trajectory of average completion times, which shows how useful bridging is for those facing tight deadlines."
